The paper contains a brief review of the thesis presented in 1933 by Mr. Kennedy and Miss Noakes in their paper before The Institution. These authors concluded that the efficiency of electricity distribution had not improved appreciably during the period 1921–31, and their hypothesis has been accepted in this paper, which consists of a review of modern factors which may be contributing to the lack of increase in the efficiency of distribution.A brief comparison is made between rural and urban areas and it is concluded that rural areas quickly become remunerative and that they are not likely to have affected the efficiency of the supply industry as a whole. The rate of increase of domestic consumption is analysed for the whole country and it is shown that the average consumption per consumer using electricity for lighting, heating, and cooking, has not increased during the period 1927–35 and that it may have actually decreased during that period, owing to the connection of large numbers of domestic consumers who use only a small quantity of electricity for the minimum purposes, and. who are not subsequently increasing their annual consumption.In order to examine the causes of this lack of development in domestic supplies an analysis is made of the average charges of each undertaking for domestic and power purposes, and the relationship between charges and consumption is also considered. The differentiation between the charges for power and domestic supplies is shown to be irrational if domestic development is envisaged on broad and progressive lines, and it is suggested that domestic supplies may be subsidizing power supplies in many instances.Finally, the factors mentioned above are shown to be likely to affect seriously the trend of supply development in the immediate future, and the conclusion is reached that the very necessary expansion of development must be controlled and directed in a more co-ordinated manner. It is suggested that the expansion of demand must be preceded by a reduction of charges for domestic supply and a halt in the downward trend of charges for power. The alteration in charges must be accompanied by a greater unification of tariffs and charges which may ultimately be achieved by voluntary arrangements between undertakings but which can only be achieved quickly by means of a single executive authority which would have the exclusive right to direct and initiate the unification of tariffs and charges.Three reasons are advanced in the paper to account for the mal-development of the domestic supplies, viz.:—(1) Prices for domestic supply are generally too high to permit of the extensive use of electricity, and reductions in price tend to follow an increased demand, instead of preceding: isfe., As a result the domestic load continues to be restricted, the fixed charges per unit sold remain high, and a condition of expanding demand with consequent falling costs becomes impossible of achievement. This is particularly true for undertakings supplying less than 10 million units per annum.(2), Electricity for power purposes is sold, in many cases, at charges which are unremunerative and which are considerably below the equivalent cost of production by private plant. The effect of this is to place on domestic charges a burden which prohibits the domestic load from increasing to the point at which its inherently high diversity makes it profitable. This applies chiefly in the case of the larger undertakings.(3) The absence of a unified tariff basis and a unified scale of charges for electricity causes anomalies and inequities which have a psychological effect in deterring consumption.